Unit information: Advanced Microeconomics in 2017/18

Unit name	Advanced Microeconomics
Unit code	EFIM30009
Credit points	20
Level of study	H/6
Teaching block(s)	Teaching Block 1 (weeks 1 - 12)
Unit director	Professor. Giovannoni
Open unit status	Not open
Pre-requisites	Intermediate Economics 2 (EFIM20009)
Co-requisites	None
School/department	School of Economics
Faculty	Faculty of Social Sciences and Law

Description including Unit Aims

The unit develops information economics and introduces mechanism design. Topics covered include dynamic incentive problems, bargaining, incentives in teams, mechanism design, auctions and matching markets.

The aims of the unit are:

• To discuss a range of standard economic problems such as market design, bidding in auctions, bargaining, contracting in teams and dynamic contracting;

• To develop further tools and economic concepts introduced in previous microeconomic units and introduce new tools and concepts at the frontier of modern microeconomics research;

• To introduce new game-theoretic methods.

• To emphasize modern approaches to modelling in microeconomics.

Intended Learning Outcomes

At the end of the course students should have a good understanding of many issues at the frontier of modern microeconomics.

They will be able to analyse a range of decision-theoretic situations by appropriate selection and application of microeconomic models.

They will be able to explain the uses and limitations of the models discussed in the unit.

They will be able to answer interpretive and problem-based questions on:

• Mechanism design and Implementation;
• Bargaining under complete and incomplete information;
• Auctions with private and common values;
• Dynamic contract theory;
• Incentive issues in teams;
• Contractual incompleteness;
• Alternative methods for the valuation of environmental goods

Teaching Information

18 lectures, 2 exercise lectures and 9 classes

Assessment Information

Unseen 3 hour written exam in January. All of the learning outcomes above will be assessed.

Formative assessment (2 assignment lectures). Across the formative assignments, all learning outcomes are assessed.

Reading and References

• Rasmussen: Games and Information (4ed), Blackwell

• Jehle and Reny: Advanced Microeconomic Theory, Pearson

• Laffont and Martimort: The Theory of Incentives, Princeton Un. Press